'RealMoney' Radio Recap: Katrina Plays

Cramer tells listeners to consider where bailout money is going. Avoid the homebuilders here, he says.

Refineries are currently the bottleneck, and the refinery play Cramer recommends is Valero Energy ( VLO). Valero, "should be a core holding," said Cramer. Use the recent weakness to buy some shares, he said.

Companies that own energy resources should also do well. Cramer recommends EnCana ( ECA), Marathon Oil ( MRO) and Chesapeake Energy ( CHK). "Pick them up here for the long term," Cramer said.

As for communications, Cramer said cell-phone towers will have to be added and we'll have to put more antennas on the towers we have. Cramer recommends American Tower ( AMT) and Global Signal ( GSL).

Insurance carries should be able to raise rates in the wake of the hurricane. Cramer likes Montpelier Re ( MRH), Argonaut Group ( AGII) and American International Group ( AIG).

Cramer focused on the homebuilding sector in Tuesday's Sector Spotlight. In response to an email question about Comstock Homebuilding ( CHCI), Cramer said, "I don't see a lot here." Cramer said the bear case for homebuilders included a dramatic rise in raw costs for wood and building supplies. Additionally, recent news articles have suggested the Washington, D.C., housing market, Comstock's home market, had cooled. Cramer said Comstock was "down too much to sell." But, he cautioned, just because a stock is finished going down doesn't mean it is going to start going back up again.

Another emailer asked about Centex ( CTX). Cramer said Centex was the cheapest homebuilder and has a "huge presence" in Texas. Centex should benefit from rebuilding along the Gulf coast.